As of October 1, significant provisions of the Minnesota Debt Fairness Act have come into effect. These new regulations aim to protect Minnesotans from certain practices related to medical debt. Under the new law, medical debt cannot be automatically transferred to a spouse, used as a reason to deny medically necessary care, or reported to credit agencies.
Attorney General Keith Ellison announced these changes and introduced a free legal clinic scheduled for October 5 in Minneapolis. The clinic will offer Minnesotans with medical debt an opportunity to learn about their rights under the Debt Fairness Act and receive one-on-one advice from attorneys.
The Minnesota Debt Fairness Act was signed into law by Governor Walz on June 17, 2024. Its provisions are designed to create a fairer debt collection system, especially concerning medical debt, which is often unavoidable for individuals.
“We can all agree that you should pay back what you borrow,” said Attorney General Ellison. “We can also agree that debt should not drag you into poverty. That is why my Office partnered with Senator Boldon and Representative Reyer to pass the Minnesota Debt Fairness Act."
Ellison expressed gratitude towards Senator Boldon and Representative Reyer for their leadership in passing the legislation. He emphasized that the act ensures spouses are not liable for each other's medical debts after death, hospitals cannot refuse necessary care due to unpaid bills, and medical debt does not damage long-established credit histories.
Further provisions of the act include improved bankruptcy protections effective since August 1, 2024, and upcoming income-based limits on wage garnishment set for April 1, 2025.
The legal clinic at NorthPoint Health & Wellness Center will provide information on how various debts go through collections processes but will not resolve issues immediately. It aims to help attendees understand available options for managing their debts.
Additionally, an expungement clinic will run concurrently to assist eligible Minnesotans in expunging certain criminal offenses.
Minnesota residents can report violations of consumer protection laws via an online form or by contacting the Attorney General’s Office directly.